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Wait staff, tipping, and Minimum Wage

Should Tipping be figured into a wait staff wage?

  • Yes, it is perfectly fine for wait staff to have a lower wage, they are making that up in tips.

    Votes: 14 30.4%

  • No, It is the job of the management to pay their employees accordingly.

    Votes: 16 34.8%

  • A combo of both.

    Votes: 10 21.7%

  • I need a beer and I don't care...

    Votes: 6 13.0%
  • Total voters
    46
Porchev said:
True. By the way, totally off subject, if you ever feel like explaining regular straight line deprecation on a rental house and how it effects me when I sell it--please feel free. My wife asked me what it was last time we did taxes and I just said, I am not exactly sure but we do it this way every year (as I am filling in info using H&R Block software). I can't wait to sell the house and not have to deal with the taxes and everything else that comes with being a landlord.

But back to the tips, do waiters and waitresses have a minimum percentage they are supposed to claim? Or has that already been discussed?
Click to expand...
On the straight line deprecation, I can tell you what I think is true (it may not be).
Say you bought a house for $30,000, and rent it out,
You set up the deprecation for 30 years at $1000 per year.
This is the amount you deduct off of the property income each year.
After 5 years you sell the property for $35,000.
You would pay $10,000 in capital gains tax, because the deprecated purchase price is now $25,000.
Several decades ago, when I was a waiter, they gave a $2/hour tip credit.
So you worked at $2 below minimum wage, with the idea that you would make at least $2.00 per hour in tips.
The minimum wage amount got reported to the IRS.
If you made more than $2/hour, you were supposed to report it, but few did.
 
longview said:
On the straight line deprecation, I can tell you what I think is true (it may not be).
Say you bought a house for $30,000, and rent it out,
You set up the deprecation for 30 years at $1000 per year.
This is the amount you deduct off of the property income each year.
After 5 years you sell the property for $35,000.
You would pay $10,000 in capital gains tax, because the deprecated purchase price is now $25,000.
Several decades ago, when I was a waiter, they gave a $2/hour tip credit.
So you worked at $2 below minimum wage, with the idea that you would make at least $2.00 per hour in tips.
The minimum wage amount got reported to the IRS.
If you made more than $2/hour, you were supposed to report it, but few did.
Click to expand...

No. Depreciation has no basis on recognized gains of the house. The only thing you need to know as far as selling is the sale price and the basis of the house (which is what you bought the house for, including all fees and commissions, along with additions to the house meant for maintenance and improvement).

The purpose of depreciation is to ease the amount of recognized and taxable income you have to pay in any given year. It has no factor in the actual worth of the house, and is not a factor in its sale.
 
Porchev said:
True. By the way, totally off subject, if you ever feel like explaining regular straight line deprecation on a rental house and how it effects me when I sell it--please feel free. My wife asked me what it was last time we did taxes and I just said, I am not exactly sure but we do it this way every year (as I am filling in info using H&R Block software). I can't wait to sell the house and not have to deal with the taxes and everything else that comes with being a landlord.

But back to the tips, do waiters and waitresses have a minimum percentage they are supposed to claim? Or has that already been discussed?
Click to expand...

There is a minimum amount but I can't remember what it is... 13% ?? Some declared a lot less than that though.
 
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